Steve,Harry,and Chris,who own and operate a family auto parts store,are experiencing tough times during a downturn in the local economy.To help the store survive these conditions,the brothers agree to each take a 25 percent reduction in salary for a one-year period.This decision:
A)demonstrates a weakness of financial management.
B)illustrates an important advantage of a family business.
C)reveals a lack of customer orientation in a family business.
D)reflects a lessening of entrepreneurial ambition in second-generation businesses.

Question

Quizplus · Accepted Answer

This decision illustrates an important advantage of a family business, as the brothers are willing to make personal sacrifices in order to ensure the survival of their family-owned store. This level of loyalty and dedication is often seen in family businesses and can help them weather tough economic conditions. The other options do not accurately reflect the situation presented in the scenario.

Steve,Harry,and Chris,who Own and Operate a Family Auto Parts Store,are